National Tax-Exempt Bond Fund

The Armada National Tax Exempt Bond Fund is for investors who would like to generate income that is free from federal income tax. The fund invests in municipal debt securities of issuers in the United States and the District of Columbia. 		xml version="1.0"?>
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PRICE  (A Shares as of 11/1): $10.38


as of 9/30/2002     Average Annual Total Returns and Ratings
National Tax-Exempt Bond Fund 7-Day
Effective
Yield		 7-Day
Current
Yield		 30-Day
Current
Yield		 Current
Quarter
End		 YTD 1YR 3YR 5YR 10YR/
Since
Inception
A Shares 3.67% 3.60% 3.57% 3.48% 7.97% 7.11% 7.10% 5.64% 5.36%
B Shares 2.94% 2.89% 2.86% 3.31% 7.53% 6.37% 6.26% 5.05% 5.07%
C Shares 2.93% 2.89% 2.86% 3.41% 7.53% 6.48% 5.75% 4.75% 4.92%
I Shares 3.93% 3.85% 3.82% 3.65% 8.29% 7.50% 7.20% 5.71% 5.40%

Investment Objective

The Armada National Tax Exempt Bond Fund seeks to provide current income exempt from federal income tax, in keeping with conservation of capital.

Risk & Reward
Asset Class Comparison


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Fund Statistics

  All data is as of quarter end,
  unless otherwise indicated.
Class A Shares
Cusip Number 042086355
NASDAQ Symbol ANTEX
Net Asset Value as of 11/1/2002 $10.38
Inception Date 7/31/1984
Dividends Frequency Monthly
Dividends Paid ($ per share)
Past Quarter
Past 12 Months
 
N/A
N/A
Avg. Weight Mat. 6.72 days
Total Net Assets (millions) $175.58

Investment Strategy

It’s not what you make, it’s what you keep that matters

The Armada National Tax Exempt Bond Fund’s managers select investment grade, or unrated securities that have been determined by the advisor to be of equivalent caliber, debt securities issued by the United States and the District of Columbia, as well as their political subdivisions, agencies, or instrumentalities. The Fund may include general obligation, agency, pre-funded and escrowed, utility or hospital bonds. The Fund’s managers strive to avoid taxable capital gains distributions, realizing gains or losses only when it is beneficial to the overall goals of maintaining portfolio credit quality and maximizing after-tax returns. The dollar-weighted average maturity of the fund is expected to remain within three to ten years. The Fund’s duration (its sensitivity to interest rate changes) is expected to remain within 20% of its benchmark index, the Lehman 7-Year Municipal Bond Index. *

Portfolio Composition


Municipal Bonds 93.90%  
STIFs/Money Markets 6.00%  
Alternative Minimum Tax Issue 0.10%  


Management Team

At Armada, specialization is the key to our investment management philosophy. Our portfolio managers and research analysts work in independent teams. Each team focuses on a single sector or investment style. Their dedication and clear focus are reflected in the unwavering style purity of our funds.

Municipal Fixed Income Investment Management Team
Christian Swantek  Director of Tax Exempt Fixed Income Investment
Stephen Carpenter  Senior Portfolio Manager


Armada Fund Family
Small Cap Growth Fund Mid Cap Growth Fund Large Cap Ultra Fund International Equity Fund Small Cap Value Fund Small/Mid Cap Value Fund Equity Growth Fund Tax Managed Equity Fund Equity Index Fund Core Equity Fund Large Cap Value Fund Aggressive Asset Allocation Fund Balanced Asset Allocation Fund Conservative Asset Allocation Fund GNMA Fund U.S. Government Income Fund Bond Fund Total Return Advantage Fund Limited Maturity Bond Fund Intermediate Bond Fund Ohio Municipal Money Market Fund Pennsylvania Tax Exempt Money Market Fund Tax Exempt Money Market Fund Money Market Fund Government Money Market Fund Treasury Plus Money Market Fund Treasury Money Market Fund National Tax Exempt Bond Fund Pennsylvania Municipal Bond Fund Ohio Tax Exempt Bond Fund Michigan Municipal Bond Fund

Returns for the period Feb 24, 2000 to Jan 28, 1999 reflect the performance of the Fund’s Class B Shares, returns for the period Jan 28, 1999 to Jun 22, 1998 reflect the performance of the Fund’s Class A Shares, and returns for the period prior to Jun 22, 1998 reflect the performance of the Fund’s Class I Shares.
For Class B shares, the annualized return since the actual inception date of Jan 28, 1999 was 3.86% without sales charge and 3.13% with sales charge. For Class A shares, the annualized return since the actual inception date of Jun 22, 1998 was 5.12% without sales charge and 3.95% with sales charge.
The Class A shares have a maximum sales charge of 4.75%. The Class B shares have a maximum contingent deferred sales charge of 5.00%.
For Class C shares, returns for the period Feb 24, 2000 to Jan 28, 1999 reflect the performance of the Fund’s Class B Shares, returns for the period Jan 28, 1999 to Jun 22, 1998 reflect the performance of the Fund’s Class A Shares, and returns for the period prior to Jun 22, 1998 reflect the performance of the Fund’s Class I Shares.
For Class C shares, the annualized return since the actual inception date of Feb 24, 2000 was 6.08% without sales charge and 6.08% with sales charge.
The Class C shares do not have a front end sales charge, but do have a 1.00% charge on redemptions of shares that are held for less than 18 months.
The Index is not connected with the Armada National Tax Exempt Bond Fund. It is not possible to invest in this or any other index.
The sample portfolio illustrated is as of 10/31/2002 and is an example only. It is not a permanent reflection of the Fund. Per the prospectus, the Fund will normally invest at least 80% of the value of its total assets in investment-grade fixed income securities.
The performance quoted represents past performance of the National City Bank’s internally managed common trust fund adjusted for fees and expenses for periods prior to 4/9/98. The common trust was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance.
Includes federal tax rate of 39.6%.
The sample portfolio illustrated is as of 10/31/2002 and is an example only. It is not a permanent reflection of the Fund.

Mutual funds involve risks including possible loss of principal. Performance figures quoted herein may be lower due to recent market volatility. Past performance is not indicative of future performance, and the principal value and investment return will fluctuate, so that you may have a gain or loss when you sell your shares. National City Investment Management Company (IMC) serves as investment adviser to Armada Funds, for which it receives an investment advisory fee. Armada Funds are distributed by SEI Investments Distribution Co. (SIDC), Oaks, PA 19456. SIDC is not affiliated with IMC and is not a bank. This must be accompanied or preceded by a current Armada prospectus. Read it carefully before you invest or send money.

Total returns shown reflect reinvestment of dividends and capital gains.
During the reporting periods shown, the administrator, custodian and advisor have waived fees. Without such waivers, performance would have been lower.

During the reporting periods shown, the administrator, custodian and advisor have waived fees. Without such waivers, performance would have been lower.


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